B. Riley Financial Buys 29% Of Bebe Stores

(RTTNews) - B. Riley Financial, Inc. (RILY) Tuesday said it plans to acquire 29 percent of bebe stores, inc. to create a tax efficient platform.

B. Riley said it has converted its existing loan into shares of bebe common stock and has acquired 250,000 additional shares from a family trust formed by bebe founder and chairman Manny Mashouf. The conversion price was $6.00 per share, representing a premium of approximately 35 percent over bebe's trading price of $4.44 at the close of business on January 12.

As per the agreement, two of five seats on the bebe Board of Directors will be for Riley and Kenny Young, and Nick Capuano have joined bebe's Board.

Bebe had successfully divested its retail stores, and contributed all of its intellectual property rights including licensing revenue to BB Brand Holdings LLC, 50% jointly owned by Bluestar Alliance LLC.

Sullivan & Cromwell LLP served as legal counsel to B. Riley. Latham & Watkins LLP advised bebe on the transaction.